The Foreign Currency Convertible Bond (FCCB)

The foreign currency convertible bond, FCCB, is a type of international investment that allows you to get the benefit of a bond and a stock. It is issued by foreign corporations. When you invest in this type of bond, you are going to have to do so with a foreign currency. This requires you to convert your dollars into the specific foreign currency, before you can make a purchase.

Convertible Bond

This type of security allows you to convert the bond into stock in the future. This means that you can receive regular interest payments when it is a bond, and then you can choose to convert it over to a stock in the future. Many people that own bonds do not like the fact that they cannot take advantage of large appreciation in a company. However with this type of convertible bond, you can leave it as a bond for as long as you want and then take advantage of the appreciation in the company by converting to stock.

The content on this site is provided for informational purposes only and is not legal or professional advice. Advertised rates on this site are provided by the third party advertiser and not by us. We do not guarantee that the loan terms or rates listed on this site are the best terms or lowest rates available in the market. All lending decisions are determined by the lender and we do not guarantee approval, rates or terms for any lender or loan program. Not all applicants will be approved and individual loan terms may vary. Users are encouraged to use their best judgment in evaluating any third party services or advertisers on this site before submitting any information to any third party.